In today’s briefing:
- JIC Launches Shinko (6967) Deal At ¥5,920/Share
- Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
- CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think
- Base Food (2936 JP): Partial Tender Offer at JPY688
- JX Advance Metals Pre-IPO – The Positives – Transforming
- Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies
- Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025
- Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update
- Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update
- CELSYS (3663 JP): Full-year FY12/24 flash update
JIC Launches Shinko (6967) Deal At ¥5,920/Share
- Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share.
- This is basically going to be all arbs and passive now. And arbs gonna arb.
- Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.
Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
- SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
- The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position.
- The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.
CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think
- Today, the closing date of the Tender Offer for Macromill, Inc (3978 JP) by CVC saw the tender offer extended by an extra 10 days with new news.
- Price had been declared final. One very large shareholder had said they would not tender. Two more were negotiating. Those two will now tender and reinvest in the back end.
- This does not mean the tender offer is a done deal, but it is worth examining.
Base Food (2936 JP): Partial Tender Offer at JPY688
- Base Food (2936 JP) announced a partial tender offer from MBF Acceleration, the largest shareholder.
- The offer is for a maximum of 3.7 million shares (6.97% ownership ratio) at JPY688 per share, a 23.3% premium to the last close price.
- The offer has no minimum acceptance condition, and the price is reasonable. The estimated minimum proration is 21.43%.
JX Advance Metals Pre-IPO – The Positives – Transforming
- JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
- JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
- In this note, we talk about the positive aspects of the deal.
Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies
- While the homework imposed on companies has been increasing year by year, TSE’s market restructuring and “request to raise P/B” have made companies directly aware of the cost of listing.
- MBO is a company’s choice to go private as a result of the cost of maintaining a public listing. Many companies have yet to reach this conclusion.
- The conversion of listed subsidiaries into wholly owned subsidiaries is a conclusion that has finally been reached; 230 listed subsidiaries will have to come to some conclusion eventually.
Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025
- Peptidream Inc (4587 JP) reported better-than-expected 2024 result, with all key parameters beating upwardly revised guidance. Both revenue and net profit hit record high.
- Larger than anticipated upfront associated with the expanded Novartis collaboration and increased milestone revenue contributed to the stellar performance of 2024.
- The company expects 2025 revenue to increase 5% YoY to ¥49B. Both core operating and operating profits are expected to increase 2% YoY and net profit by 1%.
Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update
- FY12/24 revenue was JPY245.6bn (+7.5% YoY), with operating profit at JPY13.2bn (+15.0% YoY) and net income JPY9.0bn (+20.6% YoY).
- Segment revenue and operating profit showed mixed results, with notable increases in packaging inks and digital printing materials sales.
- FY12/25 forecasts project revenue of JPY268.0bn (+9.1% YoY), with operating profit at JPY15.5bn (+17.8% YoY) and net income JPY10.8bn (+19.9% YoY).
Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update
- Revenue increased 6.2% YoY, driven by strong Consulting and Urban & Spatial Development segments, despite a 50.9% YoY decline in operating profit due to valuation losses from an investee company’s IPO.
- Consulting segment saw a 27.7% YoY increase in orders and a 6.1% YoY revenue rise, with operating profit up 79.1% YoY.
- Energy segment experienced a 48.5% YoY rise in orders and a 70.9% YoY increase in operating profit, despite a 2.1% YoY revenue decline.
CELSYS (3663 JP): Full-year FY12/24 flash update
- FY12/24 results: Sales JPY8.2bn (+1.4% YoY), operating profit JPY2.1bn (+58.7% YoY), net income JPY1.4bn (+123.5% YoY).
- FY12/25 forecast: Sales JPY9.1bn (+10.7% YoY), operating profit JPY2.6bn (+19.0% YoY), net income JPY1.7bn (+24.6% YoY).
- FY12/27 targets: Sales JPY10.7bn (+30.4% from FY12/24), operating profit JPY3.3bn (+53.8%), ROE 30% (23.6% in FY12/24).
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